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BMW -- Not Mercedes -- Grabs U.S. Luxury-Car Crown

The upset came after Autodata declared Mercedes the champion Wednesday using data gleaned from a 'credible industry source' after neither automaker had reported their results on the industry's standard reporting day.

BMW overtook Mercedes-Benz in a surprise upset Thursday to grab the crown of best-selling luxury brand in the United States after an incentive-fueled race to the finish of 2011.

The upset came after Autodata declared Mercedes the champion Wednesday using data gleaned from a "credible industry source" after neither automaker had reported their results on the industry's standard reporting day.

"I have great confidence that 2012 will be even better especially with the all-new BMW 3 Series arriving in the U.S. in February with more new and refreshed models coming in the months after," Ludwig Willisch, CEO of BMW of North America said in a news release.

With the champion of the past 11 years -- Toyota's Lexus -- hobbled by the fallout from Japan's devastating March 11 earthquake and tsunami, the two Teutonic giants went head-on to snatch the highly visible symbol of automotive supremacy.

Mercedes pulled ahead in November thanks to the launch of its new 2012 C-Class sedan and was expected to end up the victor.But BMW regained the lead and claimed first place with a lead of some 2,600 vehicles.

BMW on Thursday reported that its sales rose 12.6% in 2011 to 247,907 after posting a 15% gain in December.

Mercedes reported a 13.3% gain to a record 245,231 vehicles sold in 2011 after a 28% jump in December sales.

Lexus finished a distant third as 2011 sales dropped 13% to 198,552.

BMW raised its incentive spending more than $200 to $3,694 per vehicle sold from November to December, while Mercedes' average spend remained virtually flat at $3,174, Edmunds.com found.

The average discount percentage on a new BMW in December was 11.2% off the sticker price, compared to 9.5% for a new Mercedes, the automotive website determined.